The rally itself is a part of a larger battle between two contradictory body parts – the heart and the mind. The heart wants to believe that the worst is over. It reacts sentimentally, remembering the glory days of the great bubble era and wishing they were back.
May 29th, 2009 | Bill Bonner | 1 comment | ContinuedAll Posts Tagged With: "rally"
Debt Built Up to Levels Even Obama Says Are “Unsustainable”
And then, all that debt that they built up over the last quarter century is a problem. It has to be paid down to the point where it isn’t a problem. And that means the obvious thing – people have to cut back on their spending.
May 20th, 2009 | Bill Bonner | 0 comments | Continued
The Greenback and Gold Alliance
As heaps of negative economic data poured in, investors drove gold and U.S. Treasuries up and virtually everything else down. We remember it because it was so weird. The rally in the U.S. dollar came at a point of maximum pessimism about U.S. deficits. But as there was maximum pessimism about the global economy at the same time, you got a “flight to safety” bid for the dollar and gold. Strange bedfellows for a rally, don’t you think?
May 18th, 2009 | Dan Denning | 1 comment | Continued
Krugman Warns That the Run-up in Stocks Can’t Be Justified By the Fundamentals
“The market seems to be looking as if this is going to be an average recession, but it’s not,” said Paul Krugman, Princeton University’s Nobel Prize-winning economist.
May 15th, 2009 | Bill Bonner | 0 comments | Continued
Rosenberg Let His Clients Know He Thought the Sucker’s Rally Was Over
“Risk is much higher now than it was 18 weeks ago,” Rosenberg wrote. ” The nine-week S&P 500 surge from 666 at the March lows to 920 as of yesterday has all but retraced the prior nine-week decline from the 2009 peak of 945 on January 6 to the lows on March 9.
May 14th, 2009 | Dan Denning | 6 comments | Continued
House Prices Down and Aussie Market Enters Second Wave of Rebound Rally
If you were drawing up a plan for your dream economic recovery, this is how you would draw it up. The weakness emerging in the Australian housing sector (the fastest decline in prices in six years) would be made up for by resurgent Chinese demand for Aussie resources, led by the first growth in China’s manufacturing sector in nine months.
May 5th, 2009 | Dan Denning | 6 comments | Continued
The Rally is On as the Dow Rises
We repeat ourselves: one of the surest things in the investing world is a rally after a major downturn. Typically, prices recover 20% to 50% of the previous decline.
May 1st, 2009 | Bill Bonner | 1 comment | Continued
China Stepping Up Purchases of U.S. Treasury Debt
Is the rally still on? We’re not sure. Yesterday, the Dow fell 83 points…after a weak bounce on Tuesday. We expected the rally to last until June and to take the Dow back to the 10,000 range. But anything could happen.
April 24th, 2009 | Bill Bonner | 4 comments | Continued
It Wouldn’t be a Real Bear Market Rally if it Didn’t Test Your Confidence in Your Position
Perhaps it’s too early to say. But after the long holiday break and the news that Goldman Sachs somehow eked out US$1.8 billion in earnings in the last quarter, you get the feeling that the Aussie market might enjoy a stroll in the green today.
April 14th, 2009 | Dan Denning | 6 comments | Continued
